10A Action Items 2018 0402 - Laserfiche WebLink

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49 the effect of reducing Tax Revenues allocated to the Redevelopment Property Tax Trust Fund and available to the Successor Agency. Although the federal and State Constitutions include clauses generally prohibiting the Legislature’s impairment of contracts, there are also recognized exceptions to these prohibitions. There is no assurance that the State electorate or Legislature will not at some future time approve additional limitations that could reduce the tax increment available to pay debt service on the 2018 Bonds and adversely affect the source of repayment and security of the 2018 Bonds. Risks to Real Estate Market The Successor Agency’s ability to make payments on the 2018 Bonds will be dependent upon the economic strength of the Project Area. The general economy of the Project Area will be subject to all of the risks generally associated with urban real estate markets. Real estate prices and development may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in development costs and by other similar factors. Further, real estate development within the Project Area could be adversely affected by limitations of infrastructure or future governmental policies, including governmental policies to restrict or control development. In addition, if there is a significant decline in the general economy of the Project Area, the owners of property within the Project Area may be less able or less willing to make timely payments of property taxes or may petition for reduced assessed valuation causing a delay or interruption in the receipt of Tax Revenues by the Successor Agency from the Project Area. See “THE PROJECT AREA - Projected Tax Revenues and Debt Service Coverage” for a description of the debt service coverage on the 2018 Bonds. Concentration of Property Ownership Based on fiscal year 2017-18 locally assessed taxable valuations, the following property owners represent the largest concentrations of ownership within the Project Area: Property Owner % of Total Value % of Incr. Value Ghirardelli Chocolate Company 4.3% 6.3% AMB Property Corporation 2.0 2.9 Chill Build San Leandro LLC 1.9 2.8 Georgia Pacific Corrugated LLC 1.3 1.9 PK I Fashion Faire Place LP 1.0 1.5 General Foods Corp 1.0 1.5 Acco Engineered Systems Inc 0.9 1.4 Khachaturian Henry Tr 0.9 1.4 Seal San Leandro LLC 0.9 1.3 Peterson Tractor Co 0.7 1.1 One of the property owners shown above (Peterson Tractor Co) has two pending assessed value appeals with respect to its property in the Project Area. The bankruptcy, termination of operations or departure from one of the Project Area by one of the largest property owners from the Project Area could adversely impact the availability of Tax Revenues to pay debt service on the 2018 Bonds. 154